There is no shortage of new things in the NFT market. It is worth doing to review the most expensive and classic head projects and reflect on how they got to where they are today. Making rules and breaking them are the three laws of revolutionaries in this world. Let’s sort out how CryptoPunks and BAYC Boring Ape got to where they are today.
1. Revisit CryptoPunk from 0 to 1: how important it is to set the rules of the NFT market
In the NFTs market, there is nothing more punk than having a CryptoPunk. Punk is a status symbol, a part of Internet history, an indescribably valuable asset, and punk may really be the most important NFT project.
CryptoPunks’ journey to unstardom is intertwined not only with the history of NFTs, but with the Ethereum blockchain itself. Collectors want them, millionaires love them, and the mainstream media doesn’t know about them. Even the rise of popular algorithmically generated avatar projects like the Bored Ape Yacht Club can be traced directly to the CryptoPunk model.
So, for those of you who don’t know about the project, we’ve specially invited GMoney, an investor, research advisor, and all-around futurist in the crypto world, to give us the ultimate guide to CryptoPunks: 10,000 Algorithmically Generated Unique Pixel Art How did the role become the most expensive NFT.
What are CryptoPunks?
Launched by product studio Larva Labs in June 2017 and acquired by Yuga Labs in 2022, CryptoPunks is one of the first collections of NFTs on the Ethereum blockchain. It consists of 10,000 unique 24×24 pixel art images depicting humans (male and female), apes, zombies and aliens. Every punk can exhibit 87 unique combinations of attributes, or as most people say, traits. These attributes include things like hats, pipes, necklaces, earrings, blindfolds, etc.
A punk can have up to 7 traits. However, some punks can even have zero traits. You can see this in relation to value and scarcity in the graph below.
Who created CryptoPunks?
Unlike the more recent projects it has inspired, CryptoPunks wasn’t originally about creating a community, it didn’t even have a roadmap. The project is an experiment conceived by Canadian software developers and founders of Larva Labs, Matt Hall and John Watkinson.
At the time, the NFT market was a far cry from the strong market we see today. As a result, Punks got off to a slow start at first, albeit gaining a legion of collectors who believed in the technology the Ethereum blockchain had to offer. In the beginning, they were given away for free to anyone who wanted it. Because you need an Ethereum wallet to collect one, the supply is limited to those already invested in the cryptocurrency.
“CryptoPunks are important because the community grows organically around them,” explained GMoney. “They have a gimmick because they were one of the first NFT projects on Ethereum — and they were free to claim in the first place.”
GMoney said that early backers of CryptoPunks, such as now top big Vs Pranksy, DaveDave and SeedPhrase, “realized earlier than most that digital ownership was going to spread more and more on-chain. Being able to own and It will be very valuable to ask for something.”
Since 2017, CryptoPunks has grown from a simple niche internet fad to the ultimate NFT project. While it’s not technically the first NFT project on Ethereum, it’s certainly the most influential. Many of those with the patience to hold have become multi-millionaires, and those lucky enough to get in before the 2021 craze are considered the most forward-thinking in the NFT space.
How to Buy CryptoPunk (Not as Investment Advice!)
Those who are new to the NFT space will inevitably encounter CryptoPunks sooner or later. When they meet CryptoPunks, they immediately understand one thing: punk is an invaluable asset.
Let’s take a look at the pricing:
On July 6, 2017, Alien Punk #3100 was sold for 8 ETH ($2,127). At the time, that seemed like an absolutely ridiculous price to pay for a JPEG. However, nearly four years later, on March 11, 2021, the same punk sold for a staggering 4,200 ETH ($7.58 million).
While we’re talking about the highest punk sales to date (currently), 100x resale cases are not uncommon during the 2021 CryptoPunk bull run. Over the course of the year, we can see punks last traded at 7 ETH in the NFT market reaching 100 ETH in the fall. As of March 2022, the most recent Punks are selling for around 60-100 ETH each, with rarer Punks selling for 150+ ETH. If you have extra funds in your wallet, you can buy one on OpenSea.
In the development of the punk market, the auction house Christie’s has made punk value popular by exposing those in the more traditional art market to punk. As a follow-up to the mega-auction house’s $69 million Beeple sale in March, Christie’s launched a collection of nine CryptoPunks in May that fetched a whopping $16.9 million.
Why are CryptoPunks so expensive?
It’s not just the price that makes Punks so precious. CryptoPunks have come to be seen as a symbol of art, investment and status.
Considering their history, and how they have grown and developed with the Ethereum blockchain, some believe that owning Punk is like a bet on the importance of NFTs and the Ethereum blockchain. The early proponents of punk, for the most part, didn’t stumble across the project. As GMoney puts it, “You have to be involved in cryptocurrency early on to participate in CryptoPunks”.
In short, the project is so highly rated because of its historical significance and the belief in Ethereum that it represents.
On social media, people with CryptoPunks are often seen as builders and visionaries. They are given trust and status. In fact, many collectors have created entire characters, projects, communities and brands around a punk.
Regardless of the ratio of social value to financial value, celebrities, venture capitalists and even hedge funds have joined the CryptoPunks bid in droves. All in all, it’s hard to underestimate a project that turned a collector into a millionaire almost overnight. The collection remains valuable due to the success of early collectors.
While Punks may be one of the top NFT projects of all time, the team behind the project is not immune to controversy.Larva Labs faced a rebound in February 2022 when one of their co-founders, John Watkinson, sold his V1 CryptoPunks holdings, which were born out of the original CryptoPunks smart contracts. A few days after the sale, the team attempted to blacklist the budding project. This condemnation threatens to cause the price of V1 Punks to plummet, causing financial losses to everyone who buys them from Watkinson. At the same time, Watkinson keeps all of his sales proceeds from losses due to price drops caused by his own company.
Society is divided on whether what Larva Labs is doing is really wrong. Some argue that the company does not deserve criticism, as the team has made it clear that they disapprove of the project and intend to sell it. Others believed the company was at fault, as the team simply condemned the project and said they were selling two days after the co-founders had already sold.
This is not the first time the company has been criticized by the NFT community. Larva Labs also faced the embarrassing face of being “slapped in the face” for allegedly attacking valid projects that weren’t actually trying to deceive people, and for not clarifying what rights users had with V2 Punks.
CryptoPunks was acquired by Yuga Labs
In March 2022, Yuga Labs, creator of the Bored Ape Yacht Club, acquired both CryptoPunks and Meebits. With this acquisition, Yuga Labs said they aimed to foster a “community of builders” to create spin-offs around the two projects. To achieve this, Yuga Labs will transfer intellectual property, commercial and exclusive licensing rights to various NFT holders, as they have done with their BAYC series. This will enable owners of CryptoPunks and Meebits to create artwork and products based on their NFTs like BAYC owners.
As part of the deal, Yuga Labs also received 423 CryptoPunks and 1711 Meebits. When asked what they plan to do with this stuff, Yuga Labs’ pseudonymous co-founders Gordon and Gargamel said: “We’re in no rush to do anything but give their IP to holders and see what they’re going to create, Then watch the market react.”
The future of CryptoPunks
Only a few years old, CryptoPunks is already a traditional classic project in the NFT space. Everything you need to know about the project has been public for a long time. Punks were born and will continue to live on the Ethereum blockchain, that is immutable.
With the rapid growth of the NFT market, Punks will always be like a milestone in the NFT world. As GMoney put it, “CryptoPunks will continue to be a very big pillar of the NFT community. They don’t need to evolve, or anything to happen, to cement their place in history”.
Still, with the arrival of a new owner, the Punks may experience some changes. Currently, Yuga Labs gets a cut every time the Boring Ape is resold. However, Larva Labs did not do the same with CryptoPunks and Meebits. Yuga Labs say they don’t plan to change this, but they haven’t provided any statement that they do intend to do with the collections.
Mass holders aside from imagining its utility, the most interesting part of the CryptoPunks journey is that it is still too early to really understand the ecosystem. Blockchain technology is disrupting the world’s financial infrastructure, and NFTs are changing how we think about art, media, community, and even the broader concept of consumer ownership.
Since NFTs are often seen as a product of an uncertain speculative market in a niche market, it seems fitting that the market’s mascot is punk. If the future is led by people in the crypto world, being called a punk might be the best compliment you can get.
2. Revisiting the story of BAYC from 0 to 1: The NFT market needs the spirit of constantly “breaking the rules”
Bored Ape Yacht Club (BAYC) is one of the most influential NFT projects in the world. Second only to CryptoPunks when it comes to PFP (profile picture) projects, BAYC has not only kicked off the 2021 NFT avatar craze, it has provided thousands of collectors with an affordable alternative to CryptoPunks programs, and a vibrant community.
Who created the Boring Ape Yacht Club (BAYC)?
Any active member of the NFT community must have seen PFP apes throughout the Metaverse, but where did it all start?Where did these apes come from? Like most projects, BAYC has invested a lot of time and effort. Actually the story started with some friends who wanted to create something themselves in real life.
Gargamel and Gordon Goner are co-founders of the BAYC and Yuga Labs brands, with help from Emperor Tomato Ketchup and No Sass. All four used these pseudonyms until they were humanized by BuzzFeed in a February 2022 article.
Before BAYC, Gargamel and Gordon Goner have been involved in projects in the crypto world in some capacity (holding and trading) since 2017, and Tomato and Nosass are software engineers who are somewhat new to NFTs.
The lead artist behind the BAYC original series is a woman named “Seneca” or “All Seeing Seneca”. Other artists include Thomas Dagley, Migwashere and a couple who chose to remain anonymous. Today, Seneca has given up on her NFTs and is trying to gain market recognition for the work she once did.
What is the boring “Boring Ape Yacht Club”?
Before the idea of BAYC was born, when the team first started to conceive of the NFT project, they found that their idea of ”art” was better suited to display on a bathroom wall rather than a traditional canvas. Following this idea, they realized they wanted the bathroom to be in a bar, but it had to be an exclusive bar that only members of the club could access.Thus, the idea of a “yacht club” was born.
Throughout the framework of the story, the club will be inhabited by future apes. Specifically, those who have been “kidnapped” (jumped into) into cryptocurrencies and NFTs. After a few years, these wealth free apes find themselves bored as they spend most of their time sitting at the bar with their friends. This story foundation is sufficient for the BAYC founders to use over and over again.
How did BAYC start?
After spending their savings on this project, the characteristics of the NFT image were determined, the artistry was determined, and the minting contract was written, the team at Yuga Labs is ready to launch Bored Ape Yacht Club on April 29, 2021. For fair distribution, the price of each ape is 0.08ETH, things started slowly, then like most projects in the NFT space, the influx of players snowballed violently until May 1 two days later On the day they were sold out.
Over the next month, two things happened: Ape’s secondary sales began to grow rapidly, and the developers began to implement their roadmaps within the now fairly active BAYC community.
At this point, as you might have guessed, BAYC is much more than just PFP NFTs, and yes, the Bored Ape Yacht Club is a real club and their venue is Discord.
The only way to join this exclusive club is to buy an ape on the secondary market. Although there were not many applicants at the beginning, as of March 2022, the reserve price of the monkey has reached nearly 82ETH.
However, the club members themselves will not hesitate to suggest to you that an ape with a high floor price must be worth starting, as the benefits of joining outweigh the “fluctuation losses” of ETH.
So far, the BAYC community has received quite a few member rewards.
- Members own the commercial use rights of their monkeys. This means they can make and sell prints, t-shirts, coffee mugs and more using the intellectual property they own in BAYC NFTs.
- BAYC also released their own merchandise exclusively for ape owners. This requires members to log in with their ETH wallet to verify ownership before purchasing. Currently, #2’s collaboration with streetwear giant TheHundreds is underway.
- A new project called the “Boring Ape Dog Club” (BAKC) has been launched, and the entire supply of NFTs will be airdropped exclusively to ape owners. 1 ape = 1 dog — and BAKC’s reserve price almost immediately surpassed 1 ETH on the secondary market.
- BAYC members have a say in where project funds go. To date, the community initiative has donated millions of dollars to various charities.
- A recent roadmap update announced more member-only utilities, including scavenger hunts, BAYC project narrative updates, games, and more upcoming events.
Incentives aside, BAYC feels exactly like the developers’ intent. This exclusivity is a bonus for those who support or decide to join the team early on.
In general, NFTs allow people from all walks of life to be part of an exciting technological, cultural and financial movement; BAYC really shows that. From students to engineers, mail carriers to millionaires, the environment within the club embodies a kind of ape inclusivity.
In March 2022, Yuga Labs announced that it had acquired CryptoPunks and Meebits. As a result, Yuga Labs now controls the three most valuable NFT IPs in existence.
With this acquisition, Yuga Labs said they aimed to foster a “community of builders” to create spin-offs around the two projects. To achieve this, Yuga Labs will transfer intellectual property, commercial and exclusive licensing rights to various NFT holders, as they have done with their BAYC series. This will enable owners of CryptoPunks and Meebits to create artwork and products based on their NFTs like BAYC owners.
Yuga Labs’ Twitter on March 19 revealed that in April, the platform will launch a game, and you can see some familiar top-notch NFT images in the video above (you know you are awesome!).
Launch of $APE Token
March 2022 is a big time for Yuga Labs. Just days after announcing their acquisition of CryptoPunks and Meebits, the people behind the influential project announced the launch of a new token, ApeCoin ($APE). ApeCoin is billed as “a token for culture, gaming and commerce that empowers a decentralized community to build projects at the forefront of web3”.
“The community has wanted ApeCoin for a long time, so we’re excited to see it materialized through community ownership,” Nicole Muniz, CEO of Yuga Labs, said in a statement. “Yuga Labs will continue to be a builder of products and experiences, bringing new ideas and energy to the community.”
Additional announcements surrounding $APE will be made via the ApeCoin Twitter account.
The future of BAYC
Months after its launch, the BAYC community is still a vibrant, high-flying market, as it has a roadmap designed to provide ongoing utility to its members. Granted, time moves incredibly fast in the NFT market, so the open question is “what’s next?”
Many members have the opportunity to profit by auctioning off their apes. This is potentially life-changing money we’re talking about. The best-selling Ape of all time, Ape #8817, sold for $3,408,000 at Sotheby’s Metaverse auction in October 2021. The ape wears a wool turtleneck, rainbow spinner hat and silver hoop earrings.
The ape, akin to punk, has become a status symbol. With the added feature of being able to identify your fellow apes on social media, becoming an ape owner shows you’re part of a club of over 5,000 members. In addition to those in the crypto and NFT communities, we have also witnessed the blessing of many celebrities, including superstars Shawn Yue, Stephen Curry, LaMelo Ball, and more, entering the irreplaceable space by purchasing an ape.
As floor prices continue to rise and an increasingly fiery community, we may see Ape go down the same path as Punks, that is, as a project of “legacy” value that can be left to future generations, it reinvents itself Defined the NFT market. But it’s worth noting the distinction between the two projects, as one sets the rules (Punks) and one completely changes the rules of the game (BAYC).
The Bored Ape Yacht Club is not only dominating the “JPEG Summer” of the NFT community, but also the catalyst to kick off the PFP Chaos Project in the summer of 2021. As Punks continued to heat up in the first half of this year, and Punk’s derivative projects began to taper off, BAYC filled the need for originality and substance in the collections and art parts of the NFT market.
Punks are undoubtedly the gold standard for NFT projects, but what they lack in terms of community, more than made up for by the value of ETH, is out of reach for most collectors even at the reserve price. BAYC certainly sets a precedent for community-based projects – we’ve seen countless people follow in its footsteps using its success as a template. With both projects now owned by Yuga Labs, we are looking forward to its next steps.
Now that BAYC’s “success code” has been cracked, anyone can guess what will happen next.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/relive-the-story-of-cryptopunks-bayc-boring-ape-from-0-to-1-create-rules-and-break-them-you-must-account-for-one/
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